eReferrals: Easy as 1 – 2 – e?

Getting on-profile referrals is arguably the best way to build a financial advisery practice. Basically, there are two kinds of referrals: solicited and unsolicited. Unsolicited referrals are the best; they imply your client is confident in your services and that the referred is in need of your services. Although there are many approaches for soliciting referrals, it may be difficult to find an effective method you are comfortable using.

Here's a referral method that's as easy as 1 — 2 — e. Use an e-newsletter (e-mail newsletter) as the referral target instead of a meeting, slowly build your e-mail list over time, and use the e-newsletter to build relationships with on-profile referrals, until they are ready to meet with you. This is a long-term approach, but it fosters strong relationships with both clients and prospects. It's easy to implement and sustain, and it's non-threatening — not putting you, or the client, on the spot.

Here are some easy ways of leveraging technology to get even more on-profile referrals:

1. Strengthen your relationships with current clients using:
   1. Constant Communication;
   
   
   2. Consistent Communication;
   
   
   3. Superior Client Services; and
   
   
   4. Sound Financial Advice.
2. Make sure you have a Web site with pertinent information about you, your philosophies, and your services. Highlight what sets you apart from others, and how your clients benefit. With an e-newsletter, you can drive traffic to your Web site where potential clients can learn more about you and your services.
3. Build your pipeline (list).

   Instead of solely asking on-profile referrals for a scheduled meeting, ask if you can send an e-newsletter. You'll have greater success asking for something that requires little commitment from the referrer and the referred.

   Why e-newsletters? They're easy to implement, effective, easy to refer (e-mail addresses at your fingertips) and easy to sustain, given their low cost and ease of distribution. Best of all, you don't have to ask directly if you don't want to. You can also supplement this type of campaign with others, provided they don't conflict.

4. Begin building relationships.

   Communicate with your clients and prospects regularly via your e-newsletter. Provide content that's interesting, but not necessarily about their finances. You can also communicate information about "Appreciation Events" and "Administrative Reminders", which will be seen by both clients and prospects.

5. Continue building your list and sending out your e-newsletter.
6. Your expectations and analysis of success should be based on client satisfaction (loyalty), the number of e-newsletter subscribers, the number of opened e-newsletters, and finally, how many new clients you receive. Adding short-term marketing initiatives is okay, provided they work in concert with this long-term approach.

   Worst-case? You'll have added more value to your relationship with current clients; this in itself can contribute to your receiving more referrals who fit your preferred profile.